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| SPONSOR: | Hobbs | DATE TYPED: | 01/31/00 | HB | 114 | ||
| SHORT TITLE: | NM Venture Capital Funds | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY00 | FY01 | |||
| Indeterminate | Recurring | STPF | ||
(Parenthesis ( ) Indicate Revenue Decreases)
Conflicts with Senate Bill 201
SOURCES OF INFORMATION
State Investment Council (SIC)
Legislative Finance Committee (LFC)
SUMMARY
Synopsis of Bill
This bill changes several provisions of section 7-27-5.15 NMSA. The bill raises the maximum percentage of the Severance Tax Permanent Fund portfolio that may be invested in New Mexico venture capital funds from 1% to 3%. The bill raises the maximum investment that may be made in a single New Mexico venture capital fund from $7.5 million to $15 million as well as raising the minimum size of a venture capital fund from $5 million to $15 million.
Significant Issues
This bill would increase the authorized investment in New Mexico venture capital funds from approximately $40 million under the current law to approximately $120 million.
At the meeting of the State Investment Council January 25, 2000, it was reported that to date, only $25.7 million of the $40 million authorized has been committed for investment in the New Mexico program and only $12.5 million of the $25.7 million has actually been drawn down. It was further reported at the meeting that one of the New Mexico venture capital funds, Colorado Venture Management, may not have a full-time employee present in New Mexico as required under the New Mexico venture capital program. Colorado Venture Management has for some time been authorized to invest $5 million. As of January 25, 2000 Colorado Venture Management had yet to actually invest any of that amount.
FISCAL IMPLICATIONS
Indeterminate.
ADMINISTRATIVE IMPLICATIONS
No impact in the short term. May require additional staff in future years as the program size increases.
CONFLICT
Senate Bill 201 would decrease the percentage of investment in the New Mexico program from 1% to 3/4%.
JE/njw